Workers in Walmart warehouse get $21 million wage theft settlement

Workers in a Walmart warehouse may get $21 million in back pay, interest and penalties as part of a wage theft settlement with contractor Schneider Logistics. If you're thinking, "Wow, $21 million is a lot," you're right-and there's reason to raise an eyebrow at Schneider's willingness to pay that much as a settlement rather than taking its chances in court.

The workers and their lawyers had fought to get Walmart included as a defendant in the case, arguing that since the warehouse was dedicated entirely to Walmart products and Walmart exercises significant control over working conditions, it was, with Schneider, a joint employer of the workers. Earlier this year, a judge agreed with that argument, saying Walmart would have to go to trial. However:

    ... under the terms of the settlement, the full amount of the penalty falls to Schneider, the contractor. Walmart will pay nothing.
    "We're obviously pleased with the proposed settlement agreement," said Kory Lundberg, a Walmart spokesman. "Schneider is the one that's solely responsible for paying the agreed upon amount."

Not only that, Walmart avoids a trial that could have found that, yes, Walmart is responsible for abuses in its warehouses. Given the size of the proposed settlement-as compared, for instance, with a $4.7 million settlement in a separate case last year-you have to wonder if Walmart put pressure on Schneider to make this case go away.  

Tell me: When will the unwashed masses of wingnuts understand that business owners are NOT on their side?